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What Tool Can a Government Use to Correct a Market

question 77

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What tool can a government use to correct a market with a negative externality, thereby setting the efficient level of output and maximizing surplus?


Definitions:

Market Development

A business growth strategy focusing on increasing sales of existing products to new markets or demographic segments.

Diversification

The strategy of increasing the variety of products or markets to reduce risk.

Diversification

The strategy of entering into new markets or creating new products to spread and reduce risks.

Product-Market Evolution

describes the dynamic changes and development in how a product interacts with its market, including growth, competition, and consumer preferences over time.

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